National Pension Service "Reducing Domestic Stock Proportion... Expanding Overseas Investment"

[Asia Economy Reporter Ji-hwan Park] Park Neung-hoo, Minister of Health and Welfare and Chairman of the National Pension Fund Management Committee, stated on the 20th, "Considering the influence of the National Pension on the domestic market, we have a medium-term asset allocation direction to reduce the proportion of domestic stocks."

Minister Park Neung-hoo said in his opening remarks at the 5th National Pension Fund Committee meeting of this year held at the Plaza Hotel in Jung-gu, Seoul, in the afternoon, "The National Pension Fund is currently in a 'fund accumulation phase' where premium income exceeds expenditures, resulting in fund accumulation and abundant liquidity," adding, "During this fund accumulation phase, it is a time to do our best to enhance long-term returns through active fund management and ensure fiscal stability by expanding the proportion of risky assets and overseas investments while reducing the proportion of domestic stocks."

He explained, "This medium-term asset allocation faces difficulties as it must be made for the next five years amid uncertain long-term domestic and international economic outlooks due to the novel coronavirus disease (COVID-19)," emphasizing, "As a long-term investor, the National Pension will maintain the direction of medium-term asset allocation so far and thoroughly manage risks to achieve stable performance."

Minister Park assessed, "Although the major shocks in the financial market are stabilizing, predicting financial market conditions and long-term macroeconomic outlooks remains challenging."

He added, "Going forward, the National Pension will thoroughly respond to changes in the financial market and continuously pursue investment diversification to enhance returns stably as a long-term investor even in the post-COVID era."

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